Real estate withholding law changes for 2007
On September 22, 2006, the governor signed AB 2962. This new law amends Revenue and Taxation Code Sections 18662 and 18668, making changes to real estate withholding requirements for all transactions closing on or after January 1, 2007.Previously it was required that 3 and 1/3 percent of the sales price be withheld from the proceeds of a real estate transaction for non-resident sellers. Now these sellers may choose between the original withholding method or an alternate method where only the capital gains rate is applied to the estimated gain. Instead of waiting until the end of the year to file and get money back, the seller just fills out the necessary forms and submits them to the title company before the close of escrow.
We encourage any seller to consult with their accountant or competent tax professional to determine the best choice for them.
More about this new law may be read here.
- Mick Orton
posted by SFResidence.com @ 7:57 AM
0 Comments:
Post a Comment
<< Home